Definition of «local currency»

The term "local currency" refers to a form of money that is used in a specific geographic area, usually within a country or region. It is distinct from national currencies such as the US dollar, Euro, Yen etc., which are widely accepted and used across countries. Local currencies are generally not legal tender and are often used alongside national currencies for transactions within local communities. They can be issued by local governments, non-profit organizations or community groups to promote economic development, support small businesses, and encourage spending within the local economy. Examples of local currencies include time banks, where members exchange their skills and services for credits that can be redeemed for goods and services from other members; and LETS (Local Exchange Trading Systems), which are similar to time banks but also allow for trading with non-members.

Sentences with «local currency»

  • When we look back over the past three years, investors have earned remarkably similar returns in local currency terms in very different parts of the world. (schroders.com)
  • You may exchange cash and traveler's checks for local currencies at hotels, banks and exchange bureaus. (singlestravelintl.com)
  • The company says it has been in touch with government officials and also follows compliance procedures, but does not exchange bitcoin into local currency directly as part of its service. (coindesk.com)
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